The Peel Ports Final Salary Pension Scheme has completed a £230m bulk purchase annuity buy-in with PIC, covering the pensions of c.2,000 members across a number of Peel Ports Group companies including The Mersey Docks and Harbour Company Limited, Port of Sheerness Limited, The Manchester Ship Canal Company Limited, Clydeport Limited, and Clydeport Operations Limited.
Peel Ports Group is one of the largest port operators in the UK, transporting over 70 million tonnes of cargo every year for customers globally.
This is the second time PIC and Peel Ports Group have worked together to secure members’ pensions. In 2017, PIC completed a £725m buy-in with the Trustee of the Former Registered Dock Workers Pension Fund, a multi-employer pension scheme covering dock workers and ex-dock workers who worked for a number of ports across the UK, including The Mersey Docks and Harbour Company Limited.
“We’re delighted to have achieved our long-standing ambition to fully buy-in the Scheme, improving the financial security of our members benefits whilst reducing pension-related risks for Peel Ports Group. PIC impressed us early in the process with a compelling proposal and a clear commitment to transact. Its financial strength and reputation for delivering high-quality service to pension scheme members was a key factor in our decision and ultimately led us to selecting PIC as our insurance partner. Peel Ports Group already had a positive experience of PIC following a 2017 buy-in relating to past employees with benefits in the Former Registered Dock Workers Pension Fund and we are delighted to have partnered again on such an important transaction,” said Amanda Willis, Chair of the Scheme’s Trustee Board and Group Treasurer at Peel Ports Group.
“Strengthening relationships with companies, trustees and sponsors we’ve worked with before is a core part of our strategy at PIC and this transaction offered a valuable opportunity to deepen the partnership with Peel Ports Group. We’re pleased to have delivered a proposal that met the Trustee’s objectives and supported its long-term goals. PIC invests significant time and effort in ensuring we provide the right outcomes for our policyholders, and we are proud that our focus on customer service was key in the selection of this transaction,” added Matt Richards, Head of Origination Structuring at PIC.
“This transaction once again demonstrates the value of a joined-up approach between the Trustee and the Scheme sponsor, with all parties setting clear objectives at the start of the process and working closely together to achieve a successful outcome. We are delighted to have supported the Trustee in achieving such a positive outcome for its members,” added Ken Hardman, Partner at LCP, who advised the trustee on the transaction.
CMS advised PIC on the transaction and legal advice was provided to the Trustee by Gowlings.